MEININGER Holding GmbH (“MEININGER”) and Foncière des Régions, through its subsidiary Foncière des Murs, announced today that they have formed a commercial partnership in respect of the sourcing by MEININGER and acquisition by Foncière des Régions of hotel property investment opportunities primarily in European gateway cities, to be leased to and managed by MEININGER under the "MEININGER" brand.
Primary cities targeted include Amsterdam, Barcelona, Brussels, Berlin, Geneva, Hamburg, Frankfurt, London, Madrid, Milan, Munich, Paris, Rome, Vienna and Zurich. In addition other cities in both Western and Eastern Europe where the MEININGER brand is likely to be popular are also planned for expansion.
MEININGER will operate these hotels under its brand in a lease structure. MEININGER will also provide other services appropriate to its brand. Over the next 4 years, this strategic agreement could translate into up to 400 million€ total hotel investments, subject to approval by both parties on an hotel by hotel basis, through triple net long-term leases.
Foncière des Régions, european leader of the Hotel real estate market, already has successful relationships with leading operators in this sector, including with Accor, B&B Hôtels, NH Hotels and Louvre Hotels Group. Foncière des Régions’ strategy is to strengthen its presence in the hotel sector throughout Europe and expects the partnership with MEININGER to accelerate its European footprint while creating a long term relationship with an operator with a proven track record and meaningful development potential.
As Navneet Bali, CEO at MEININGER Hotels, explains, “MEININGER is a unique hybrid hotel product. The partnership with Foncière des Régions is an important step for our expansion in Europe. MEININGER’s aim is to operate an "urban traveller's home" in every major European city. The collaboration with Foncière des Régions is an exciting step in this direction.”
Dominique Ozanne, CEO Hotels & Service-sector for Foncière des Régions adds the following: “the European leader in hotel property, Foncière des Régions today begins a new partnership with an innovative operator, marked by ambitious growth prospects. With an unprecedented concept in Europe, intended for a large customer base including backpackers and business tourists alike, Meininger is one of the most dynamic brands in the industry and a partner of choice to strengthen our development in Europe.“
UBS Investment Bank acted as exclusive financial adviser to MEININGER. Dentons acted as legal counsel to MEININGER.
